Some metro regions are seeing as many as 60% of homes flooded with competing offers that net sellers a windfall.

But the real state of the housing market might not be quite as bright as this data suggests. Here are three big reasons you should take it with a pinch of salt.

1. Supply Is Non-Existent

The spike in bidding wars may have less to do with surging demand than shrinking supply.

There aren’t many homes on the market, and the supply is slowing. Some sellers are fearful it’s a bad time to sell, while others don’t want strangers traipsing through their hallways.

For many homeowners, this just isn’t the time to make a move with all the uncertainty in the world. The financial establishment has done a great job of convincing people that 2021 will be brighter (after the elusive V-shaped recovery), so why sell now?

President Trump has repeatedly said he expects pent-up demand to explode when the coronavirus pandemic passes.

Fear of missing out on this resurgence is ensuring that sellers are “safer at home” (as we say in L.A. county.)

This feeling of economic security, at a time of widespread hardship, has them all rushing out for a bargain at the same time.

The headlines show data that is worse than in 2008, and they all expect a raging deal. This situation seems to be creating more prospective buyers, as Google search volume for “how to buy a house” is at 12-month highs.

3. Government Stimulus Kicks the Economic Reckoning Down the Road

Perhaps the most worrying aspect of the current heat in the U.S. housing market is that it’s being held up by all the temporary government stimulus that is sloshing around.

To put it simply, the government is desperate to prevent consumers from feeling how dire the economic situation really is. Because their natural response – to cut spending – would create even more economic headwinds.